Are you ready for retirement? Are your family members who are retiring soon, ready for it?
Do you find yourself asking this question once in a while: “How much is enough for my retirement?”
Here are 5 things you should know to prepare yourself for retirement:
- Retirement Account
The Retirement Account (RA) is set up to better meet your needs during your golden years. At age 55, you will need to decide on the amount of payouts you want to receive in future. The choice of payouts will determine the retirement sum to be set aside in the RA. The sum will be transferred from your Special Account and Ordinary Account.
- Payout options
The three payout options are classified as follows:
(Photo taken from CPF Board)
- CPF LIFE
Singaporeans are living longer and this means that we need to save more for a longer retirement otherwise we might outlive our savings. With CPF LIFE (Lifelong Income For the Elderly), you will receive a lifelong monthly payout starting from the payout eligibility age, which is currently at 65.
- The more you give, the more you receive
No no… No one’s preaching here…but that’s how the CPF LIFE works! Making cash or CPF top-ups into the RA allows you to receive higher payouts, if you have not reached your topping-up limit.
- Retirement sum changes periodically
Yes, in order to adjust for inflation and to account for higher standards of living, the retirement sum is adjusted annually.
As we continue to grow older, the need to save for retirement becomes more urgent. What better way to prepare for this but by the CPF Retirement Account. It also ensures that the money kept in there is safe and secure.
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